In his latest comments, Alan Greenspan warns about the “burden” the Entitlement programs put on the economy. The message is clear: unless we find a way to restrain the rising costs of programs such as Medicare, Medicaid, and Social Security, the gains of the last few years are in danger of disappearing.
With the runaway growth of these programs, combined with an aging population and the loss of tax revenue from this group as they exit the workforce, the results are bound to be disastrous.
One does not have to be genius to see where this will lead: taxes will have to be raised over and over to meet the ever-rising costs of Medicare, world without end.
Republicans and Democrats have known for years that the entitlement programs are growing at a faster rate than inflation—4% to 2% to be exact. In a few years, these programs will gobble up the Federal budget. This means the total economic collapse of the federal government and the U.S. economy.
At a time when socialists like Sanders and AOC are calling for Medicare-for-all—to cover millions of poor people who are not contributing, if they ever did, to the Medicare fund—they don’t seem to realize that the growth of this program alone would surpass even the current projected growth rate.
So, what would our socialist friends in Congress suggest? No problem, just raise the taxes on the rich and the corporations. In fact, says Sanders, even illegal immigrants will be covered by Medicare; others, like Gillibrand, want to expand social security to illegal immigrants as well.
One does not have to be genius to see where this will lead: taxes will have to be raised over and over to meet the ever-rising costs of Medicare, world without end. It’s not like Medicare costs will magically stop rising. As Greenspan says, “there’s no way to reverse” the growth of Entitlements.
As Greenspan notes, there is “economic weakness around the world.” If there is a downturn, as history teaches us there will be, we have better be prepared to handle it. For Greenspan, short term the economy “looks reasonably good”; over the long term he expects the economy “to fade very dramatically.”
What does Greenspan recommend?
What many of us Conservatives have been saying for a long time: we need to make changes to these programs in order to save them. Medicare, Social Security, and Medicaid have played—and should continue to play—an essential role in protecting Americans against the ravages and insecurity of age and illness.
We must be ready to maintain the solvency of these programs, regardless of what the future brings. The key here is to find ways to reduce costs, not increase the costs irresponsibly, as Sanders and other Dems plan to do, without concern for how to fund these programs and guarantee their survival.
This is not a Democratic or Republican issue; it is a national emergency that requires that the best minds in both parties come together to solve a problem that will have catastrophic consequences if we continue to ignore it.